Atreides Management LP Lowers Holdings in NVIDIA Corporation $NVDA

Key Points

• Atreides Management sharply cut its NVIDIA position by 77% in the first quarter, selling 4.18 million shares and retaining 1.25 million shares worth approximately $217.8 million. NVIDIA remains 4.4% of the firm’s portfolio and its fifth-largest holding.
• Despite the sale, institutional ownership remains substantial at 65.27%, while major investors including State Street, Geode Capital and Bank of America increased their stakes. Analysts remain bullish, with NVIDIA carrying an average “Buy” rating and a consensus price target of $304.26.
• NVIDIA reported stronger-than-expected quarterly results, with $81.61 billion in revenue and $1.87 in EPS, and authorized an $80 billion share-buyback program. However, insider selling has been notable, with insiders selling about $410.6 million of stock over the past 90 days.

Atreides Management LP reduced its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 77.0% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,248,592 shares of the computer hardware maker's stock after selling 4,176,639 shares during the quarter. NVIDIA comprises 4.4% of Atreides Management LP's investment portfolio, making the stock its 5th biggest position. Atreides Management LP's holdings in NVIDIA were worth $217,754,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently bought and sold shares of NVDA. State Street Corp boosted its stake in NVIDIA by 1.2% in the 4th quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker's stock worth $184,911,111,000 after purchasing an additional 11,451,386 shares during the period. Geode Capital Management LLC increased its position in shares of NVIDIA by 0.6% during the fourth quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker's stock valued at $109,446,217,000 after buying an additional 3,383,441 shares during the period. Norges Bank purchased a new stake in shares of NVIDIA in the fourth quarter worth about $62,244,133,000. Bank of America Corp DE lifted its holdings in shares of NVIDIA by 1.5% in the fourth quarter. Bank of America Corp DE now owns 187,181,484 shares of the computer hardware maker's stock worth $34,909,347,000 after buying an additional 2,849,678 shares in the last quarter. Finally, Legal & General Group Plc boosted its position in shares of NVIDIA by 1.5% in the third quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker's stock valued at $33,808,862,000 after acquiring an additional 2,609,560 shares during the period. 65.27% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Barclays reaffirmed an "overweight" rating on shares of NVIDIA in a report on Thursday, May 21st. Royal Bank Of Canada set a $280.00 price target on shares of NVIDIA in a report on Thursday, May 21st. Rosenblatt Securities restated a "buy" rating and set a $325.00 price target on shares of NVIDIA in a research report on Thursday, May 21st. DA Davidson reaffirmed a "buy" rating and issued a $300.00 price target on shares of NVIDIA in a report on Monday, June 1st. Finally, Stifel Nicolaus set a $282.00 price objective on NVIDIA and gave the stock a "buy" rating in a research report on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, NVIDIA currently has an average rating of "Buy" and an average price target of $304.26.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Reports that SpaceX plans to deploy NVIDIA’s next-generation AI hardware across terrestrial and orbital computing infrastructure reinforced expectations for another major customer and expanded demand for NVIDIA systems. Time to Buy Nvidia or SpaceX Stock After Their AI Partnership?
• Positive Sentiment: Strong spending by hyperscalers, demand for AI data-center capacity, and NVIDIA-backed projects such as Firmus’ $2 billion fundraising in Australia and Asia-Pacific supported the view that AI infrastructure investment remains robust. Firmus nearly doubles valuation to over $10.5 billion
• Positive Sentiment: Analyst and market commentary highlighted NVIDIA’s leadership in sovereign AI, with one report estimating a 92% share, while investors continued to describe the company as evolving from a GPU supplier into a broader AI infrastructure platform. What’s Going On With NVIDIA Stock Friday?
• Positive Sentiment: Recent commentary pointed to accelerating AI demand, strong cash flow and valuation support, with the median analyst price target reported at $308.50 versus recent trading levels. Should You Buy NVIDIA Stock After Its 11% Rally in a Month?
• Neutral Sentiment: NVIDIA’s rally has lifted the stock roughly 12% over five sessions, increasing focus on the upcoming earnings report. Analysts remain constructive, but some traders are pausing because near-term catalysts may be limited after the sharp advance. Two reasons why Nvidia's stock saw its biggest weekly surge
• Negative Sentiment: AMD’s acquisition of AI-inference chip startup Taalas could strengthen its competitive position and create a longer-term challenge to NVIDIA, although initial investor commentary suggested the deal does not immediately close NVIDIA’s AI gap. AMD Is Buying Its Way Deeper Into AI Inference
• Negative Sentiment: QuiverQuant data showed 45 NVIDIA insider sales and no insider purchases during the past six months, a potential caution signal as the stock trades near its highs. NVIDIA Stock Opinions on AI Market Position

NVIDIA Trading Up 2.3%

Shares of NVIDIA stock opened at $223.96 on Friday. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. NVIDIA Corporation has a 1 year low of $164.07 and a 1 year high of $236.54. The firm has a market cap of $5.42 trillion, a PE ratio of 34.30, a PEG ratio of 0.44 and a beta of 2.23. The company has a 50 day simple moving average of $205.66 and a two-hundred day simple moving average of $197.19.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping analysts' consensus estimates of $1.76 by $0.11. The firm had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business's revenue for the quarter was up 85.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.81 EPS. Analysts expect that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were paid a $0.25 dividend. This is a boost from NVIDIA's previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend was Thursday, June 4th. NVIDIA's payout ratio is currently 15.31%.

NVIDIA announced that its Board of Directors has initiated a stock buyback program on Wednesday, May 20th that permits the company to repurchase $80.00 billion in shares. This repurchase authorization permits the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's board of directors believes its shares are undervalued.

Insider Activity at NVIDIA

In other news, Director Mark A. Stevens sold 885,000 shares of the company's stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the transaction, the director directly owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Stephen C. Neal sold 15,500 shares of the company's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total value of $3,343,815.00. Following the completion of the transaction, the director owned 116,135 shares of the company's stock, valued at $25,053,803.55. The trade was a 11.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,901,125 shares of company stock valued at $410,583,015 over the last 90 days. 3.94% of the stock is owned by insiders.

NVIDIA Profile

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company's product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.

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